This is kind of a cool idea: You can buy a piece of a ball player for a percentage of his future major league earnings.
This particular case is a AA pitcher for the Indians, Randy Newsom. He's selling 4% of his future major league earnings for $50,000 (or smaller fractions down to $20/share).
That'd be fun to have, although the odds of that becoming a good investment are slim. Newsom is current 25 and his K and K/BB are quite ordinary. But as a submariner he does keep the ball in the park.
Is there a chance he could make the majors? Certainly. Is he likely to be in the big leagues for a long time? I doubt it.
In order to break even on the deal Newsom would have to remain in the majors for about 3 full seasons. Assuming he made the $400,000 the full 4% payout would be $16,000. Over 3 years that'd be up to $48,000 which just about puts you at the break even point.
But if you did that for Scott Downs several years ago (assuming it was available) it would have paid off quite handsomely!
This particular case is a AA pitcher for the Indians, Randy Newsom. He's selling 4% of his future major league earnings for $50,000 (or smaller fractions down to $20/share).
That'd be fun to have, although the odds of that becoming a good investment are slim. Newsom is current 25 and his K and K/BB are quite ordinary. But as a submariner he does keep the ball in the park.
Is there a chance he could make the majors? Certainly. Is he likely to be in the big leagues for a long time? I doubt it.
In order to break even on the deal Newsom would have to remain in the majors for about 3 full seasons. Assuming he made the $400,000 the full 4% payout would be $16,000. Over 3 years that'd be up to $48,000 which just about puts you at the break even point.
But if you did that for Scott Downs several years ago (assuming it was available) it would have paid off quite handsomely!
